FxWirePro: AUD/JPY continues downside in 'Bullish Cypher' pattern, eyes 20-DMA at 87.96, good to short rallies

• AUD/JPY is extending downside after the pair failed to hold major trendline breakout.
   
• The pair continues lower along the 'Bullish Cypher' formation on the daily charts.
   
• Technicals on daily charts have turned bearish, RSI has rolled over from overbought levels and Stochs are on verge of rollover.
   
• 20-DMA at 78.96 is immediate bear target. Violation there could see further weakness.
   
• On the flipside, we see resumption on upside on decisive breakout above major trendline resistance at 90 levels.
   
• Decisive breakout above 90 could see gains upto 61.8% Fib retracement at 91.22.

Support levels - 88.22 (23.6% Fibo 81.486 to 90.304 rally), 87.96 (20-DMA), 87.75 (weekly 5-SMA), 87.67 (50-DMA)

Resistance levels - 89, 89.25 (5-DMA), 90 (trendline), 90.48 (Dec 2015 high), 90.72 (Nov 2015 high)

Recommendation: Good to go short on rallies around 88.90/ 89, SL: 90, TP: 88.25/ 88/ 87.75/ 87

FxWirePro Currency Strength Index: FxWirePro's Hourly AUD Spot Index was at -134.398 (Bearish), while Hourly JPY Spot Index was at -50.3316 (Neutral) at 0540 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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